LD 1424

132nd MAINE LEGISLATURE
  FIRST SPECIAL SESSION-2025
Legislative Document  No. 1424
S.P. 580  In Senate, April 1, 2025
  An Act to Authorize a General Fund Bond Issue for Investment in
  Workforce Housing and Raise Certain Income Eligibility Limits in
  the Affordable Homeownership Program
    Reference to the Committee on Appropriations and Financial Affairs suggested and ordered
printed.
  DAREK M. GRANT
  Secretary of the Senate
Presented by President DAUGHTRY of Cumberland.
Cosponsored by Representative GATTINE of Westbrook and
Senators: BENNETT of Oxford, CURRY of Waldo, PIERCE of Cumberland.
  Printed on recycled paper
1     Preamble. Two thirds of both Houses of the Legislature deeming it necessary in
2 accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance
3 of bonds on behalf of the State of Maine to provide funds as described in this Act,
4 Be it enacted by the People of the State of Maine as follows:
5PART A
6     Sec. A-1. Authorization of bonds. The Treasurer of State is authorized, under the
7 direction of the Governor, to issue bonds in the name and on behalf of the State in an
8 amount not exceeding $10,000,000 for the purposes described in section 5 of this Part. The
9 bonds are a pledge of the full faith and credit of the State. The bonds may not run for a
10 period longer than 10 years from the date of the original issue of the bonds.
11     Sec. A-2. Records of bonds issued; Treasurer of State. The Treasurer of State
12 shall ensure that an account of each bond is kept showing the number of the bond, the name
13 of the successful bidder to whom sold, the amount received for the bond, the date of sale
14 and the date when payable.
15     Sec. A-3. Sale; how negotiated; proceeds appropriated. The Treasurer of
16 State may negotiate the sale of the bonds by direction of the Governor, but no bond may
17 be loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the
18 bonds, which must be held by the Treasurer of State and paid by the Treasurer of State
19 upon warrants drawn by the State Controller, are appropriated solely for the purposes set
20 forth in this Part. Any unencumbered balances remaining at the completion of the project
21 in this Part lapse to the Office of the Treasurer of State to be used for the retirement of
22 general obligation bonds.
23     Sec. A-4. Interest and debt retirement. The Treasurer of State shall pay interest
24 due or accruing on any bonds issued under this Part and all sums coming due for payment
25 of bonds at maturity.
26     Sec. A-5. Disbursement of bond proceeds from General Fund bond issue.
27 The proceeds of the sale of the bonds authorized under this Part must be expended as
28 designated in the following schedule under the direction and supervision of the agencies
29 and entities set forth in this section.
30 MAINE STATE HOUSING AUTHORITY
31   Provides funds to finance the construction of workforce housing in opportunity zones
32   established pursuant to the federal Tax Cuts and Jobs Act of 2017.
33 Total  $10,000,000
34
33     Sec. A-6. Contingent upon ratification of bond issue. Sections 1 to 5 do not
35
34 become effective unless the people of the State ratify the issuance of the bonds as set forth
36
35 in this Part.
37     Sec. A-7. Appropriation balances at year-end. At the end of each fiscal year,
38 all unencumbered appropriation balances representing state money carry forward. Bond
39 proceeds that have not been expended within 10 years after the date of the sale of the bonds
40 lapse to the Office of the Treasurer of State to be used for the retirement of general
41 obligation bonds.
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1     Sec. A-8. Bonds authorized but not issued. Any bonds authorized but not issued
2 within 5 years of ratification of this Part are deauthorized and may not be issued, except
3 that the Legislature may, within 2 years after the expiration of that 5-year period, extend
4 the period for issuing any remaining unissued bonds for an additional amount of time not
5 to exceed 5 years.
6    Sec. A-9. Referendum for ratification; submission at election; form of
7 question; effective date. This Part must be submitted to the legal voters of the State at
8 a statewide election held in the month of November following passage of this Act. The
9 municipal officers of this State shall notify the inhabitants of their respective cities, towns
10 and plantations to meet, in the manner prescribed by law for holding a statewide election,
11 to vote on the acceptance or rejection of this Part by voting on the following question:
12"Do you favor a $10,000,000 bond issue for workforce housing in the
13State's opportunity zones?"
14     The legal voters of each city, town and plantation shall vote by ballot on this question
15 and designate their choice by a cross or check mark placed within a corresponding square
16 below the word "Yes" or "No." The ballots must be received, sorted, counted and declared
17 in open ward, town and plantation meetings and returns made to the Secretary of State in
18 the same manner as votes for members of the Legislature. The Governor shall review the
19 returns. If a majority of the legal votes are cast in favor of this Part, the Governor shall
20 proclaim the result without delay and this Part becomes effective 30 days after the date of
21 the proclamation.
22     The Secretary of State shall prepare and furnish to each city, town and plantation all
23 ballots, returns and copies of this Part necessary to carry out the purposes of this
24 referendum.
25PART B
26   Sec. B-1.   Maine State Housing Authority to change Affordable
27 Homeownership Program homebuyer income limit. Resolved: That the Maine
28 State Housing Authority shall amend its rules governing the Affordable Homeownership
29 Program to change the income limit of homebuyers from 120% to 150% of the area median
30 income in all counties outside of Cumberland, Sagadahoc and York. The authority may
31 adopt rules to require that a project must have leveraged funds. Rules adopted pursuant to
32 this section are routine technical rules pursuant to the Maine Revised Statutes, Title 5,
33 chapter 375, subchapter 2-A.
34SUMMARY
35      The funds provided by the bond issue in Part A, in the amount of $10,000,000, will be
36 used by the Maine State Housing Authority to finance workforce housing in the State's
37 opportunity zones through its Affordable Homeownership Program. Part B directs the
38 Maine State Housing Authority to change the income limit of homebuyers participating in
39 the Affordable Homeownership Program from 120% to 150% of the area median income
40 in all counties outside of Cumberland, Sagadahoc and York. It also allows the authority to
41 require leveraged funds.
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